[Federal Register Volume 59, Number 75 (Tuesday, April 19, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-9300]


[[Page Unknown]]

[Federal Register: April 19, 1994]


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DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

12 CFR Chapter V and Parts 503, 504, 505, 515, 544, 552, and 561

[No. 93-250]

 

Technical Amendments

AGENCY: Office of Thrift Supervision, Treasury.

ACTION: Final rule.

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SUMMARY: The Office of Thrift Supervision (OTS) is amending its 
regulations to incorporate a number of technical and conforming 
amendments. The amendments include a global revision to reflect the 
change from the MACRO to the CAMEL rating system used by the other 
federal banking regulatory agencies and a reinstatement of the 
definition of ``affiliated person'' that was inadvertently removed. The 
rule also revises OTS's organizational regulations to reflect current 
titles and makes technical corrections to provisions concerning bylaws 
and charter reissuance.

EFFECTIVE DATE: April 19, 1994.

FOR FURTHER INFORMATION CONTACT: Mary Gottlieb, Senior Paralegal, (202) 
906-7135, or Deborah Dakin, Assistant Chief Counsel, (202) 906-6445, 
Regulations and Legislation Division, Chief Counsel's Office, Office of 
Thrift Supervision, 1700 G Street NW., Washington DC 20552.

SUPPLEMENTARY INFORMATION: The OTS is today adopting several technical 
amendments to its regulations to implement the new rating system for 
savings associations, to reinstate a definitional provision, to update 
organizational titles and addresses and correct an erroneous cross-
reference.

CAMEL Rating System

    The OTS is amending its regulations to reflect the conversion from 
the MACRO to the CAMEL rating system. The purpose of the conversion is 
to reduce regulatory burden by using the same rating system employed by 
the other federal banking regulatory agencies. The MACRO system 
currently used by the OTS is very similar to the FDIC's CAMEL policy 
guidance. The conversion is intended to improve consistency with regard 
to risk-based assessments and joint examinations. The OTS expects there 
to be virtually no practical effect on savings associations as a result 
of this change.

Affiliated Person Definition

    The OTS is also taking the opportunity to reinstate its definition 
of ``affiliated person,'' which formerly appeared as Sec. 561.5. The 
definition, which was inadvertently removed through the final rule on 
regulatory review,1 is being restored without change to avoid 
confusion or misunderstanding about the applicability of restrictions 
on affiliated persons.
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    \1\58 FR 4308 (Jan. 14, 1993).
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Bylaws and Charter Reissuance

    The appendix to part 544 which sets forth model bylaws for mutual 
savings associations is being amended to bring it into conformity with 
Sec. 544.5(b)(8). The appendix to part 552 containing model bylaws for 
stock associations is being revised to bring it into conformity with 
Sec. 552.6-1(h). A conforming change is also being made to 
Sec. 552.6(d), based upon the model bylaws contained in the appendix. 
The provisions undergoing amendment specify the amount of notice to be 
given prior to certain meetings of boards of directors and state when 
voting lists are to be prepared and how the meetings may be conducted. 
Section 552.4 concerning charter reissuance is also being revised to 
correct an erroneous cross-reference.

Miscellaneous

    Parts 503, 504 and 515 are being updated to incorporate the current 
titles of senior OTS personnel. New addresses are being incorporated 
into part 505 to reflect recent office relocations.

Administrative Procedure Act

    Pursuant to 5 U.S.C. 553, the OTS has found good cause to dispense 
with both prior notice and comment on this final rule and a thirty-day 
delay of its effective date. OTS believes that it is contrary to public 
interest to delay the effective date of the rule, as it brings the 
OTS's regulations into conformity with the current rating system. The 
OTS believes that it is in the best interest of savings associations 
for the implementing regulations to be amended at the time the rating 
system is changed. The other amendments are purely technical 
corrections.

Regulatory Flexibility Act

    Pursuant to section 605(b) of the Regulatory Flexibility Act (Pub. 
L. 96-354, 5 U.S.C. 601), it is certified that this technical 
regulation will not have a significant economic impact on a substantial 
number of small savings associations, small service corporations or 
other small entities.

Executive Order 12866

    The Acting Director has determined that this rule is not a 
``significant regulatory action'' for purposes of Executive Order 
12866.

List of Subjects

12 CFR Part 503

    Privacy.

12 CFR Part 504

    Classified information.

12 CFR Part 505

    Freedom of information.

12 CFR Part 515

    Infants and children, Postal service.

12 CFR Part 544

    Reporting and recordkeeping requirements, Savings associations.

12 CFR Part 552

    Reporting and recordkeeping requirements, Savings associations, 
Securities.

12 CFR Part 561

    Savings associations.

    Accordingly, and under the authority of 12 U.S.C. 1462 et seq., the 
Office of Thrift Supervision hereby amends chapter V, title 12 of the 
Code of Federal Regulations as set forth below.

CHAPTER V--[AMENDED]

    1. Chapter V is amended by removing the word ``MACRO'' wherever it 
appears and by adding in lieu thereof the word ``CAMEL''.

SUBCHAPTER A--ORGANIZATION AND PROCEDURES

PART 503--[AMENDED]

    2. The authority citation for part 503 is revised to read as 
follows:

    Authority: 5 U.S.C. 552a; 12 U.S.C. 1462a, 1463, 1464.


Sec. 503.1  [Amended]

    3. Section 503.1 is amended by removing the phrase ``Senior Deputy 
Director for Congressional Relations and Communications'' in paragraph 
(e) and by adding in lieu thereof the phrase ``Deputy Director for 
Washington Operations''.

PART 504--[AMENDED]

    4. The authority citation for part 504 is revised to read as 
follows:

    Authority: E.O. 12356, 3 CFR, 1982 Comp., p. 166.


Sec. 504.3  [Amended]

    5. Section 504.3 is amended by removing the phrase `` `Senior 
Deputy Director' `` in the introductory text and by adding in lieu 
thereof the phrase ```Deputy Director for Washington Operations'''.


Sec. 504.4  [Amended]

    6. Section 504.4 is amended by removing the phrase ``Senior Deputy 
Director'' in the first sentence and by adding in lieu thereof the 
phrase ``Deputy Director for Washington Operations''.

PART 505--[AMENDED]

    7. The authority citation for part 505 is revised to read as 
follows:

    Authority: 5 U.S.C. 552; 12 U.S.C. 1462a, 1463, 1464.


Sec. 505.2  [Amended]

    8. Section 505.2 is amended by removing the phrase ``1776 G Street 
NW., Street Level, 18th Street side of the building.'' in the second 
sentence and by adding in lieu thereof the phrase ``1700 G Street NW., 
from 1 p.m. to 4 p.m. on business days. Visitors are escorted to and 
from the Public Reference Room at established intervals.''


Sec. 505.4  [Amended]

    9. Section 505.4 is amended by removing the phrase ``1776 G Street, 
NW, Street Level, 18th Street side of building.'' in the third sentence 
and by adding in lieu thereof the phrase ``1700 G Street NW''.

PART 515--[AMENDED]

    10. The authority citation for part 515 is revised to read as 
follows:

    Authority: 39 U.S.C. 3220.


Sec. 515.2  [Amended]

    11. Section 515.2 is amended by removing the phrase ``Director, 
Financial and Administrative Systems, Management Office,'' and by 
adding in lieu thereof the phrase ``Deputy Assistant Director, 
Procurement and Administrative Services Division, Administration 
Office,''.


Sec. 515.4  [Amended]

    12. Section 515.4 is amended by removing the phrase ``The Financial 
and Administrative Systems Division (``FAS'') of the Management 
Office'' in the introductory text of paragraph (a) and by adding in 
lieu thereof the phrase ``Procurement and Administrative Services 
Division of the Administration Office''; and by removing the phrase 
``Senior Deputy Directors'' in paragraph (b) and adding in lieu thereof 
the phrase ``Deputy Assistant Directors''.


Sec. 515.5  [Amended]

    13. Section 515.5 is amended by removing the phrase ``Management 
Office'' and by adding in lieu thereof the phrase ``Administration 
Office''.

SUBCHAPTER C--REGULATIONS FOR FEDERAL SAVINGS ASSOCIATIONS

PART 544--[AMENDED]

    14. The authority citation for part 544 is revised to read as 
follows:

    Authority: 12 U.S.C. 1462, 1462a, 1463, l464, 1467a, 2901 et 
seq.

    15. The appendix to part 544 is amended by revising the third 
sentence of Item 8 and by adding a new sentence between the seventh and 
eighth sentences to read as follows:
Appendix to Part 544--Model Bylaws for Mutual Savings Associations
 * * * * *
    8. Meetings of the board. * * * All special meetings shall be 
held upon at least 24 hours written notice to each director 
[trustee] unless notice is waived in writing before or after such 
meeting. * * * The board may also permit telephonic participation at 
meetings. * * *
 * * * * *

PART 552--[AMENDED]

    16. The authority citation for part 552 continues to read as 
follows:

    Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a.


Sec. 552.4  [Amended]

    17. Section 552.4 is amended by removing the phrase 
``Sec. 500.32(c)(5) of this chapter'' in paragraph (d) and by adding in 
lieu thereof the phrase ``Sec. 516.1(c) of this chapter''.


Sec. 552.6  [Amended]

    18. Section 552.6 is amended by removing the phrase ``10 days'' in 
the first sentence of paragraph (d)(1) and by adding in lieu thereof 
the phrase ``20 days''.

Appendix to Part 552 [Amended]

    19. The appendix to part 552 is amended by removing the phrase 
``two days'' in the first sentence of Article III, Section 6, and by 
adding in lieu thereof the phrase ``24 hours''.
SUBCHAPTER D--REGULATIONS APPLICABLE TO ALL SAVINGS ASSOCIATIONS

PART 561--[AMENDED]

    20. The authority citation for part 561 continues to read as 
follows:


    Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a.


    21. Section 561.5 is added to read as follows:


Sec. 561.5  Affiliated person.

    The term affiliated person of a savings association means the 
following:
    (a) A director, officer, or controlling person of such association;
    (b) A spouse of a director, officer, or controlling person of such 
association;
    (c) A member of the immediate family of a director, officer, or 
controlling person of such association, who has the same home as such 
person or who is a director or officer of any subsidiary of such 
association or of any holding company affiliate of such association;
    (d) Any corporation or organization (other than the savings 
association or a corporation or organization through which the savings 
association operates) of which a director, officer or the controlling 
person of such association:
    (1) Is chief executive officer, chief financial officer, or a 
person performing similar functions;
    (2) Is a general partner;
    (3) Is a limited partner who, directly or indirectly either alone 
or with his or her spouse and the members of his or her immediate 
family who are also affiliated persons of the association, owns an 
interest of 10 percent or more in the partnership (based on the value 
of his or her contribution) or who, directly or indirectly with other 
directors, officers, and controlling persons of such association and 
their spouses and their immediate family members who are also 
affiliated persons of the association, owns an interest of 25 percent 
or more in the partnership; or
    (4) Directly or indirectly either alone or with his or her spouse 
and the members of his or her immediate family who are also affiliated 
persons of the association, owns or controls 10 percent or more of any 
class of equity securities or owns or controls, with other directors, 
officers, and controlling persons of such association and their spouses 
and their immediate family members who are also affiliated persons of 
the association, 25 percent or more of any class of equity securities; 
and
    (5) Any trust or other estate in which a director, officer, or 
controlling person of such association or the spouse of such person has 
a substantial beneficial interest or as to which such person or his or 
her spouse serves as trustee or in a similar fiduciary capacity.

    Dated: December 30, 1993.

    By the Office of Thrift Supervision.
Jonathan L. Fiechter,
Acting Director.
[FR Doc. 94-9300 Filed 4-18-94; 8:45 am]
BILLING CODE 6720-01-P